Home loan tax benefit of joint home loan (Me, my wife and my mom)

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  1. Sachin Gadade

    Sachin Gadade New Member

    Hi ,

    I have recently purchased a flat jointly with my wife and mother. We all are co-owner of flat and co-borrower of home loan.
    The flat is rented and full rent is paid by online transfer to my account.
    I pay full EMI through ECS from my salary account. My wife is working and mother is house wife with no income.
    I have following queries,

    1) Can I claim tax benefit equals to 70 % of home loan principle and interest and my wife 30%?

    2) Can I divide rent income in same proportion to tax benefit. i.e. 70% to me 30% to my wife and 0% to my mother? If not then how it will get divided ?

    3) I had consulted CA, as per his suggestion if ownership is not declared then person paying EMI will get 100% tax benefit, oter co-owner are not allowed for tax benefit.

    4) As my interest amount is big, 70-30% is more beneficial to me so consulted second CA, he said i have to declare % share of ownership on stamp paper in same proportion in which i will claim tax benefit. I was ok with it. But after few more study he is now not sure whether this will work or not as my flat purchase agreement has no share details.

    Please consult me to get benefit of home loan for tax benefit.
  2. rudrabose

    rudrabose Active Member

    If all 3 of you are co-owners and co-borrowers and the exact share has not been mentioned, it would be assumed that you all have equal share i.e. 1/3rd.

    The best would be that you show everything as 1/3rd. Otherwise, you can claim the deductions in the ratio as you like.
    1. You can show it in this ratio and then continue this ratio in future as well
    2. The rent would be divided in the same ratio in which you are claiming deduction
    3. Its not only about paying EMI but availing the loan and buying the property as well. The loan has been taken by all the co-owners and not single owner and therefore the criteria for repayment of EMI is not correct.
    4. You should always mention the share of all co-owners. However, it has not been mentioned - you can still mention it. While mentioning it, I would also advise you to mention the share of your mother as she is also the owner. Maybe, you can mention it as 70%-29%-1%.
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